Sequenom says Coventry cancels test coverage

SAN DIEGO -- Sequenom Inc. said Thursday that health insurer Coventry Health Care Inc. has changed its mind about covering the cost to patients for Sequenom's MaterniT21 Down syndrome test.

Coventry had agreed to cover MaterniT21, a maternal blood test that is designed to detect Down syndrome, along with other Sequenom tests starting July 1. Sequenom said it was informed by Coventry Monday that coverage will end Aug. 31. It said Coventry is ending the agreement without cause, as provided in the agreement with Sequenom, and the decision is not a judgment by Coventry on Sequenom or its products.

Coventry announced on May 9 that it would cover the cost of the test. The company said it has 2.2 million people in its network.

MaterniT21 intended for women who are at high risk of carrying a fetus with Down syndrome. Sequenom says the test can detect the chromosomal anomaly that causes Down syndrome as early as 10 weeks into pregnancy. It is intended to be less invasive than amniocentesis and hormone testing.

Shares of Sequenom dropped 37 cents, or 7.2 percent, to close at $4.77. They fell another 37 cents, or 7.8 percent, in aftermarket trading.